Can I contribute to my employees' RRSP+ instead of offering a cash bonus?

Yes. In fact, this is a great way to give more to your employees. Amounts you pay your employees in the framework of an RRSP+ contribution program are not included in your payroll taxes.¹ Unlike traditional bonuses, these contributions have no impact on your deductions and employer contributions.

What's more, your employees will benefit from an additional 30% in tax savings2 on your voluntary contribution and on their own contributions, as long as the maximum annual amount eligible for tax credits has not already been reached.

To learn more, read our article on the subject.

Legal Notes
1
Payroll taxes charged to the employer include the Québec Pension Plan (QPP), Employment Insurance (EI), the Québec Parental Insurance Plan (QPIP), the Health Services Fund (HSF) and the Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST). Certain contribution rates vary according to the employers specific situation.
2
The acquisition of shares of the Fonds de solidarité FTQ may give rise to labour-sponsored fund tax credits. The tax credits amount to 30%, namely 15% at the Quebec level and 15% at the federal level, and are limited to $1,500 per fiscal year, which represents a $5,000 purchase of shares of the Fonds de solidarité FTQ. Under the 2023-2024 provincial budget, only individuals whose taxable income in Quebec for the 2022 taxation year was less than $112,656 will have access to 30% tax credits for the 2024 taxation year. Please note, however, that this measure has not currently been the subject of a bill or legislative amendment and could therefore be subject to modifications.
Please read the prospectus before buying Fonds de solidarité FTQ shares. Copies of the prospectus may be obtained on the Website fondsftq.com, from a local representative or at the offices of the Fonds de solidarité FTQ. The shares of the Fonds de solidarité FTQ are not guaranteed, their value changes and past performance may not be repeated.